August 2017 Net Worth Update

 

This is my official August 2017 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 08/31/2017. Detailed explanations and a quick summary can be found below. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker.  I have been tracking my net worth monthly since May 2015.  If you want to learn how to track net worth then check out how I am doing it.

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august 2017 net worth update

 

 

 

TOTAL NET WORTH: $545,420

Quick Summary and comments: +$13,588

 

I have now been officially living in Indianapolis for just over a year.  It’s been a very productive first year for me and things are going great.   My wife and I are very happy to be living here and since we have been here we have purchased in cash 3 new rental properties.  It’s provided a nice boost in our net worth and a nice monthly passive income increase.  Things are going exactly how I planned and now I just have to keep on keepin’ on!

In the year that I have been in Indy my net worth has increased $127k.   Wow!  That is a big increase for one year as far as I am concerned.

You can track the progression of my net worth updates by looking at my net worth tracker.

Hopefully we will continue the upward growth personally and financially.  This past month I saw a nice increase in my cash position and it is explained below in my cash summary.   We did not have any major expenses hit us by surprise like what feels had been happening over and over again so that is a huge plus.   We did not travel anywhere either which saved us some money.

Real Estate Investing Update:   It has only been a few months since I finished rehabbing my latest rental and acquired a new tenant.  Right now I am back in savings mode.  I am always looking at real estate investing deals though because I am addicted to it and if something comes my way that I really want then I will do what I can to try to acquire it.  Even if it means I have to sit on it for a while to save more money to rehab it.   For now, we will just keep saving and looking for any killer deals.

Okay enough about that, lets jump into my net worth categories.

Assets: Explanations of each of my assets.

Cash:   +$12,278 

I saw a big increase in my cash position for the following reasons.

  1. I had a tenant on property # 4 pay me for the remaining lease term in cash.  It was over $6k that the tenant paid.  This has never happened to me before and I still don’t know exactly why he did it but I am not complaining.
  2. My tenant from property # 2 paid rent early.  Typically I don’t see that rent money until after the 1st of the month so this is now showing up in this net worth update which usually does not.
  3. We made a conscious effort to try to not spend as much money as we normally do and we didn’t do any travelling.

So with all those factors in play, you can see my cash went up over $12k which is great!

My cash as noted above in the spreadsheet consists of my wife and I’s checking account and my REI (Real Estate Investing) checking account.   Satisfied! 

HSA account: +$48

Slight increase in my HSA account from my tiny contributions I make each month through my employer. Nothing crazy.

My HSA deductible is $1300 for the year and I have close over $5k in this account so with that being said, since I am maxed out already with my yearly deductible, I don’t see a need right now for depositing more funds.  I am only taking a very small amount out from my day job paycheck to fund this account. Any money after that deductible will just sit in that account not making me money. I know I can use the money that I don’t put in there to get better returns as long as I invest it in more real estate. This number should increase each month a tiny bit.   Satisfied!

Company Stock Options: +$1,438

Nice increase in my stock options.  These are hovering at all time high’s and I am always wondering if I should cash them all out now.  Since I am not hard-core pressed for cash right now though I will just let it sit there.  Hopefully it will continue to grow.

These are stock options from my day job. I am fully vested.    Satisfied!

Stock Portfolio: $24

My stock portfolio is built of precious metal mining stocks.   It has been a roller coaster ride with these as expected. Took a small hit this past month.  These are highly volatile and I am keeping these until the economy crashes and gold sky rockets.  I’m in it for the long haul on these as I think it’s just a matter of time before the precious metal sector takes off.    Overall I am still profiting from these stocks as I bought them for dirt cheap.

I bought all my shares using tradeKing  which is now Ally.    Satisfied!

401K: -$16

I made an executive decision awhile back to take money out of my 401k and no longer contribute any more money to it. Mainly because I do not get matched contributions from the dreadful day job. But also because I KNOW I can make better returns using that money on rental properties.    Any movement you see in this asset is only from market fluctuations.   I am not able to withdraw the remaining amount in here until I quit my job.   I really don’t like the idea of having an account that punishes me to take money out because of age. Satisfied! 

Property # 1 (Indianapolis, IN)

All is good with my primary residence.  We are still thinking of fixing up our backyard a bit but just haven’t out of laziness and wanting to save money.  We would like to build a deck and a fire pit so we can spend more time outside especially now that the Fall weather is coming.  That is my favorite time of the year.  The only problem of course is that it cost’s a lot of money to build a deck.  I may get a few quotes to see exactly how much.

My primary residence in Indianapolis.  This was originally a turnkey property I bought back when I lived in Austin.     I bought this house for $67k almost 2 years ago.   Spent an additional $30 in renovations when  I moved into this house.  I love the location, the size of the house and because my mortgage on it is less than half of what I was paying when I was living in Austin, TX.    Super Satisfied!   Here are more details on when I originally bought this one as a rental property.

Property # 2 (Austin, TX)

Rent paid early this month which is a good thing.  This is the property in which the HVAC finally gave out in July and it cost me $4200 to replace it.   I was pleased to put in the new HVAC unit because now I know I am good for the next 15 to 20 years.   I am not pleased that I will probably have to replace the roof soon on this one also.    These  tenants have been amazing to me so I will pretty much always fix whatever they want fixed.   I screened them myself and I am proud.   🙂    This is the property I self manage in Austin.   Even now that I live in Indy, I will continue self managing this one.  I think I can do it from afar and if in the future I realize that I can not continue being my own property manager, then I will probably just find a PM to handle it.

This is my first rental property.  It’s actually the first house I ever purchased.  I bought it when I moved to Austin and it was my primary residence for a long time.  I originally never had plans for it to become a rental property but when I discovered the beautiful world of real estate investing, I knew I would someday convert this one to a rental.   I expect gradual appreciation from this property because it is in the suburbs Austin which has been growing tremendously.  Love me some HOT markets!           Satisfied!

Property # 3 (Indianapolis, IN)

Rent paid on time and no repair requests made.     These tenants in the past have been super picky and have requested more repairs than any of my other tenants, mostly really small stuff but at the end of the day, they are a good family and I am happy to keep them.

Grow your net worth today with your FREE Personal Capital account.

This is my first turnkey rental property I purchased out-of-state in Indianapolis. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!

Property # 4 (Indianapolis, IN)

This tenant decided to pay for me the remaining 8 months on the lease in full.  Im happy about it obviously because the rent is paid for the next 8 months.  No repair requests were made.     This property was the one that  I fired my property manager from originally when I first bought it as a turnkey rental properly.

This my 2nd turnkey rental property in Indianapolis I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!

Property # 5 (Austin, TX)

Mortgage paid on time. No issues. This is a note that I own from a house that I sold via owner finance in the Austin area.  If you notice though, the reason why this asset will continue to go down from the spreadsheet above is because it is a note and the principal balance on it goes down each month as the buyer pays me. Remember, I’m the lender on this one. Satisfied!

Property # 6 (Independence, MO (KC))

Rent paid on time and no repairs on this one either.   To date I have never had a repair call on this one and I have now had this property for almost 2 years now.  Its been a cash cow!    This is the last turnkey rental property I purchased located in the Kansas City area.  I bought this in late October 2015. I purchased this property also for CASH FLOW purposes only. I am not expecting appreciation gains on this one. Satisfied!

Property # 7 (Indianapolis, IN)

Rent paid on time and zero repair requests.   This one was the property I wanted to convert to an airBnb but since the tenant renewed the lease, I will put the airbnb venture on hold.   The tenant has been great so far and I don’t want to ruin that.  Easy cash flow baby!!

I bought this rental property from a wholesaler here in Indy after I moved here.  I paid this one in cash and it came with a properly screened and paying tenant which was great.  The property needs some fixing up however I won’t mess with it until after the tenant moves out or submits repairs.   This is the one I really want to convert to an AirBnB.   Satisfied!

Property # 8

Rent paid on time and no repair requests.  Life is good!

I bought this house from a wholesaler here in Indy for $65k in a very popular Indy neighborhood back in late October 2016.   I finished the rehab on this one in late November/early December 2016 and got it rented out for $950 just in time for Christmas.   December is not easy to find a qualified tenant.  Not only did my property manager find a qualified tenant but the tenant signed an 18 month lease so that we both don’t have to deal with a vacancy/move in December again.  Talk about a Christmas miracle!!!   Satisfied!

Property # 9

This is my newest rental and I received the 1st months payment on time.  I did have a repair request on a leaky faucet however I was able to fix it on m own.  I literally just had to tighten one of the supply lines underneath the sink.  Was relieved it was nothing serious but considering I fully rehabbed this property I am not expecting any repairs anytime soon.   Looking forward to add an extra $1025 in my pocket each month.  🙂   Satisfied!

I bought this home as a foreclosure off the MLS.  Paid in cash.  Check here for all the numbers and details of this property.




Liabilities: These are self-explanatory so I wont dive too deep into these however I would like to include the items below for informational purposes.

Credit Card

I only use one credit card (rewards card) that I use to purchase my everyday expenses. I pay this off in full every month. I am receiving 1.5% cash back on this card and am very pleased with it. Satisfied!

 

Last 30 days net worth graph from Personal Capital

This month’s chart shows a nice increase from one of my tenants paying me 8 months of rent upfront,  I really do love this chart. It looks great and its nice and big.      Good stuff!

 

net worth aug 2017

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Cash Flow Diaries

8 Comments

    • Oh I am a very good landlord! 🙂 Its all about keeping the rental safe and fully functional. My texas property is great and was not affected because its in Austin although my wife’s family is all in Houston and some of them were affected big time. A few of their houses were flooded and they had to get rescued by the national guard. It was pretty intense but luckily no one was harmed and they were able to rescue the pets also which is a huge deal. Thanks for asking.

  1. Wow 9 Properties is awesome. How much time do you take with managing them? IS the positive cash flow from the other properties the reason you were able to buy the last 3 houses with cash?

    • Hey EL. Honestly most months I spend 0 minutes managing them. Others months if there are repair requests I spend about 20 minutes if I contract out the repairs but if I do my own repairs it could be a few hours. So in other words. Very little time managing them.

      Yes the passive income from all my rentals helps me save a lot faster so I can use that money to purchase more but honestly it’s a combination of that, my w2 income and cashing out a few stocks every now and then that allows me to purchase these cash.

      Not to mention all the properties I buy are under 85k max.

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